78R11089 CLG-F
By: Solomons, Raymond, et al. H.B. No. 1840
A BILL TO BE ENTITLED
AN ACT
relating to a fee established and set by the State Securities Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 35, The Securities Act (Article 581-35,
Vernon's Texas Civil Statutes), is amended to read as follows:
Sec. 35. FEES. A. The Board shall establish the following
fees in amounts so that the aggregate amount that exceeds the amount
of the fees on September 1, 2002, produces sufficient revenue to
cover the costs of administering and enforcing this Act:
(1) for the filing of any original, amended, or
renewal application to sell or dispose of securities, an amount not
to exceed $100;
(2) for the filing of any original application of a
dealer or investment adviser or for the submission of a notice
filing for a federal covered investment adviser, an amount not to
exceed $100;
(3) for the filing of any renewal application of a
dealer or investment adviser or for the submission of a renewal
notice filing for a federal covered investment adviser, an amount
not to exceed $100;
(4) for the filing of any original application for
each agent, officer, or investment adviser representative or for
the submission of a notice filing for each representative of a
federal covered investment adviser, an amount not to exceed $100;
and
(5) for the filing of any renewal application for each
agent, officer, or investment adviser representative or for the
submission of a renewal notice filing for each representative of a
federal covered investment adviser, an amount not to exceed $100.
B. The Commissioner or Board shall charge and collect the
following fees and shall daily pay all fees received into the State
Treasury:
(1) for [A. For the filing of any original application
of a dealer or investment adviser or for the submission of a notice
filing for a federal covered investment adviser, Seventy-five
Dollars ($75.00), and for the filing of any renewal application of a
dealer or investment adviser or for the submission of a renewal
notice filing for a federal covered investment adviser, Forty
Dollars ($40.00);
[B. For the filing of any original application for each
agent, officer, or investment adviser representative or for the
submission of a notice filing for each representative of a federal
covered investment adviser, Thirty-five Dollars ($35.00), and for
the filing of any renewal application for each agent, officer, or
investment adviser representative or for the submission of a
renewal notice filing for each representative of a federal covered
investment adviser, Twenty Dollars ($20.00);
[C. For] any filing to amend the registration certificate of
a dealer or investment adviser or evidence of registration of an
agent or investment adviser representative, issue a duplicate
certificate or evidence of registration, or register a branch
office, $25 [Twenty-five Dollars ($25.00)];
(2) for [D. For the filing of any original, amended
or renewal application to sell or dispose of securities, Ten
Dollars ($10.00);
[E. For] the examination of any original or amended
application filed under Subsection A, B, or C of Section 7 of this
Act, regardless of whether the application is denied, abandoned,
withdrawn, or approved, a fee of one-tenth (1/10) of one percent
(1%) of the aggregate amount of securities described and proposed
to be sold to persons located within this state based upon the price
at which such securities are to be offered to the public;
(3) for [F. For] certified copies of any papers filed
in the office of the Commissioner, the Commissioner shall charge
such fees as are reasonably related to costs; however, in no event
shall such fees be more than those which the Secretary of State is
authorized to charge in similar cases;
(4) for [G. For] the filing of any application for
approval of a stock exchange so that securities fully listed
thereon will be exempt, a fee of $10,000 [Ten Thousand Dollars
($10,000.00)];
(5) for [H. For] the filing of a request to take the
Texas Securities Law Examination, $35 [Thirty-five Dollars
($35.00)];
(6) for [I. For] the filing of an initial notice
required by the Commissioner to claim a secondary trading
exemption, a fee of $500 [Five Hundred Dollars ($500.00)], and for
the filing of a secondary trading exemption renewal notice, a fee of
$500 [Five Hundred Dollars ($500.00)];
(7) for [J. For] the filing of an initial notice
required by the Commissioner to claim a limited offering exemption,
a fee of one-tenth (1/10) of one percent (1%) of the aggregate
amount of securities described as being offered for sale, but in no
case more than $500 [Five Hundred Dollars ($500.00)]; and
(8) for [K. For] an interpretation by the Board's
general counsel of this Act or a rule adopted under this Act, a fee
of $100 [One Hundred Dollars ($100.00)], except that an officer or
employee of a governmental entity and the entity that the officer or
employee represents are exempt from the fee under this subsection
when the officer or employee is conducting official business of the
entity.
C. Subject to Subsection A of this section, the Board shall
set a fee under this section in an amount that is reasonable and
necessary to defray costs.
D. A cost incurred by the Board in administering this Act
may be paid only from a fee collected under Subsection A of this
section.
SECTION 2. Section 35-1, The Securities Act (Article
581-35-1, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 35-1. FEES FOR SALES OF EXCESS SECURITIES. A. An
offeror who sells securities in this State in excess of the
aggregate amount of securities registered for the offering may
apply to register the excess securities by paying three times the
difference between the initial fee paid and the fee required under
Subsection B(2) [E] of Section 35, plus, if the registration is no
longer in effect, interest on that amount computed at the rate
provided by Section 302.002, Finance Code, from the date the
registration was no longer in effect until the date the subsequent
application is filed, for the securities sold to persons within
this State, plus the amendment fee prescribed by Subsection A(1)
[D] of Section 35. Registration of the excess securities, if
granted, shall be effective retroactively to the effective date of
the initial registration for the offering.
B. An offeror who has filed a notice to claim a limited
offering exemption, who paid less than the maximum fee prescribed
in Subsection B(7) [J] of Section 35, and who offered a greater
amount of securities in the offering than authorized pursuant to
the formula prescribed in Subsection B(7) [J] of Section 35, may
file an amended notice disclosing the amount of securities offered
and paying three times the difference between the fee initially
paid and the fee which should have been paid, plus interest on that
amount computed at the rate provided by Section 302.002, Finance
Code, from the date the original notice was received by the
Commissioner until the date the amended notice is received by the
Commissioner. The amended notice shall be retroactive to the date
of the initial filing.
SECTION 3. Section 35-2, The Securities Act (Article
581-35-2, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 35-2. FEES FOR SALES OF UNREGISTERED SECURITIES. If,
after notice and hearing, the commissioner or any court of
competent jurisdiction finds that an offeror has sold securities in
this State pursuant to an offering no part of which has been
registered under Section 7 or 10 of this Act and for which the
transactions or securities are not exempt under Section 5 or 6 of
this Act, the commissioner or said court may impose a fee equal to
six times the amount that would have been paid if the issuer had
filed an application to register the securities and paid the fee
prescribed by Subsection B(2) [E] of Section 35 based on the
aggregate amount of sales made in this State within the prior three
years, plus interest on that amount at the rate provided by Section
302.002, Finance Code, from the date of the first such sale made in
this State until the date the fee is paid. The payment of the fee
prescribed by this Section does not effect registration of the
securities or affect the application of any other Section of this
Act. The payment of the fee prescribed by this Section is not an
admission that the transactions or securities were not exempt and
is not admissible as evidence in a suit or proceeding for failure to
register the securities.
SECTION 4. This Act applies only to a fee that becomes due
on or after the effective date of this Act. The amount of a fee that
becomes due before the effective date of this Act is governed by the
law in effect when the fee becomes due, and that law is continued in
effect for that purpose.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.